{"id":102111,"date":"2025-03-05T13:15:00","date_gmt":"2025-03-05T02:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=102111"},"modified":"2025-03-05T13:14:53","modified_gmt":"2025-03-05T02:14:53","slug":"australias-economy-just-doubled-its-growth-pace-but-is-your-wallet-feeling-it","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/australias-economy-just-doubled-its-growth-pace-but-is-your-wallet-feeling-it\/","title":{"rendered":"Australia\u2019s Economy Just Doubled Its Growth Pace, but Is Your Wallet Feeling It?"},"content":{"rendered":"\n

Australia\u2019s economy gained momentum<\/strong> in the final quarter of 2024, providing support for the Reserve Bank of Australia\u2019s (RBA<\/em>) cautious stance on further rate cuts. The latest data signals resilience in growth<\/strong>, despite lingering concerns over consumer spending and inflation risks.<\/p>\n\n\n\n

A Sharp Turnaround in GDP Growth<\/h2>\n\n\n\n

According to official figures released on Wednesday, gross domestic product <\/a>(GDP<\/em>) expanded by 0.6% <\/strong>in the December quarter, doubling the pace of growth recorded in the previous three months. <\/p>\n\n\n\n

This was in line with economists\u2019 expectations<\/strong>, offering a welcome sign of stability after a prolonged period of sluggish growth.<\/p>\n\n\n\n

On a per capita basis, GDP edged up 0.1%<\/strong>, breaking a streak of seven consecutive quarters of declines. Over the year, the economy grew 1.3%<\/strong>, matching forecasts and reinforcing optimism that the slowdown may be easing.<\/p>\n\n\n\n

What\u2019s Driving the Rebound?<\/h2>\n\n\n\n

The latest numbers highlight a broad-based recovery<\/strong>, with both public and private spending<\/strong> contributing to the expansion. <\/p>\n\n\n\n

A boost in exports of goods and services also played a role, reflecting Australia\u2019s strong trade ties and resilient global demand.<\/p>\n\n\n\n

\n

\u201cModest growth was seen broadly across the economy,\u201d said Katherine Keenan<\/strong>, head of national accounts at the Australian Bureau of Statistics (ABS<\/em>). <\/p>\n<\/blockquote>\n\n\n\n

The figures suggest that despite headwinds, the economic engine is still running, albeit at a moderate pace.<\/p>\n\n\n\n

Rba Remains Cautious Despite Rate Cut<\/h2>\n\n\n\n

The RBA lowered its cash rate to 4.1% in February<\/strong>, its first cut in over a year, citing growing confidence that inflation is moving toward target levels. However, the central bank has remained careful in its approach, as it expects GDP growth to rise to 2.4%<\/strong> by the end of 2025.<\/p>\n\n\n\n

RBA Governor Michele Bullock<\/strong> acknowledged that consumer spending is recovering more slowly than anticipated, which remains a critical factor in determining the pace of economic expansion.<\/p>\n\n\n\n

\n

\u201cConsumption is recovering, but it\u2019s not recovering as strongly as we initially thought it would,\u201d she said following the February rate decision.<\/p>\n<\/blockquote>\n\n\n\n

Political Implications Ahead of Elections<\/h2>\n\n\n\n

The economic acceleration is a positive development f<\/strong>or Prime Minister Anthony Albanese\u2019s center-left Labor government, which is currently trailing the opposition Liberal-National coalition in polls ahead of the upcoming election <\/strong>in May.<\/p>\n\n\n\n

A stronger economy could bolster Labor\u2019s standing, as the government has championed policies to support growth and tackle cost-of-living pressures<\/a><\/strong>. <\/p>\n\n\n\n

However, with GDP <\/strong>still below its pre-pandemic <\/strong>20-year average of nearly 3%<\/strong>, economic concerns remain a key voter issue.<\/p>\n","protected":false},"excerpt":{"rendered":"

Australia\u2019s economy just picked up speed, doubling its growth pace in the final quarter. With the RBA treading carefully on rate cuts, the real impact on inflation and consumer spending remains to be seen.<\/p>\n","protected":false},"author":5,"featured_media":102124,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-102111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=102111"}],"version-history":[{"count":13,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102111\/revisions"}],"predecessor-version":[{"id":102125,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/102111\/revisions\/102125"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/102124"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=102111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=102111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=102111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}